If Square suddenly shuts down your account, it can be confusing and stressful, especially when you depend on it to run your business. One day everything’s working, and the next, your money is on hold and your account is locked. This happens more often than you might think, especially to businesses Square sees as “high-risk.” Many times, the company doesn’t give a clear reason, making it hard to know what went wrong or how to fix it.
In this guide, we’ll explain why Square shuts down accounts, what it means if your Square account is under review, what you can do next, and why switching to a more reliable option like LeisurePay could help you avoid these issues in the future.
Common Reasons Why Square Accounts Get Deactivated or Frozen
Here are some of the most common reasons Square may freeze or deactivate your account, often without much warning.
Violation of Square’s Terms of Service
Square has a lot of rules, and it’s easy to break one without meaning to. If you sell something that they don’t allow, describe your product the wrong way, or use your account for personal payments, your account could be shut down. Even small mistakes can trigger a review or deactivation, or cause issues during Square account verification.
High-Risk Business Categories
Square doesn’t work well with high-risk businesses. If you sell things like CBD, supplements, or adult items, your account could get shut down, even if everything you do is legal and aboveboard. Just being in a high-risk category is sometimes enough for Square to flag your account.
Suspicious Transactions or Chargebacks
If you get a lot of chargebacks, big payments, or a sudden increase in sales, Square might see it as suspicious. Even if everything is above board, their system could freeze your funds or shut down your account while they look into it.
Incomplete or Failed Identity Verification
Square has to verify your identity to continue processing your payments. If your information is missing, doesn’t match public records, or your documents are unclear or outdated, your account could get flagged. Until you fix any issues, they may freeze your account or block access.
Linked Bank or Card Discrepancies
If your bank or card information does not match the details on your Square account, Square may flag your account. Even minor mistakes can lead to frozen funds or an account review, which can slow down your business.
What Does “Square Account Under Review” Really Mean?
If your Square account is “under review,” it means Square is checking your account more closely for potential violations of its risk policies. Here’s what’s happening behind the scenes:
What You Might See in the Dashboard During Review
When your Square account is under review, you might receive notifications like “Your account is under review” or “Transfers are temporarily paused.” These messages usually don’t provide much information and can be confusing. During this time, you may not be able to accept payments, transfer funds, or access your account.
How Long Reviews Take
Square reviews can take a few hours, a few weeks, or even longer. They don’t always give a clear timeline, which can be stressful, especially if you need the money to run your business. You might not get many updates unless you ask Square yourself.
What Happens to Your Funds During Review
While your account is under review, Square may freeze your money to prevent possible problems like chargebacks. You won’t be able to use or transfer the funds until the review is over. Sometimes, the money can be held for up to 90 days, even if your account gets shut down.
Square Account Verification: Where It Often Goes Wrong
Verification might sound simple, but it’s one of the most common reasons accounts get delayed, flagged, or even shut down. Here’s where things tend to go off track.
Documents Required for Verification
Square may ask for documents like your business license, tax information, ID, bank statements, or invoices to verify your business. If something is missing or doesn’t match, it can delay or stop the process.
Issues that Flag Accounts
Square notices when something doesn’t look right. This could be a different business name, address, or bank information that doesn’t match, a sudden jump in sales, or large payments. Even if it’s by accident, these things can lead to extra checks or even result in your account being reviewed or shut down.
Common Verification Delays
Verification delays often happen because of issues such as blurry photos, old documents, or details that don’t match. Square may not clearly communicate the issue, and support can be slow to respond. You might not know there’s a problem unless you check your dashboard.
What to Do When Your Square Account Is Suspended or Shut Down?
Wondering what to do when your Square account is suspended or shut down? Here’s how to navigate the situation and take the next steps.
How to Contact Square Support
Getting help from Square can be hard. You have to log in and use the Help Center to ask for a call or email, but not everyone gets live support. Some people even try social media to get a reply. It can be frustrating, but stay patient and keep trying; being polite and persistent helps.
Information to Prepare for Filing an Appeal
When you file an appeal, have all important documents ready, like your ID, business license, EIN, bank info, recent invoices, and any messages with customers. Be sure to explain clearly and simply what your business does.
Waiting for a Reply
It can take Square a few days or weeks to reply. Some businesses get answers quickly, but others wait longer and have to follow up. If your account is closed for good, Square will usually send you an email. Keep a record of all your messages and the dates they were sent.
Permanent vs. Temporary Suspension
Not all suspensions are permanent. If it’s a temporary suspension, Square may just need more documents, and your account could be reactivated. But if it’s a permanent deactivation, it usually means Square sees your business as too risky, and they won’t reopen your account, no matter what you do.
When It’s Time to Close Your Square Account & Find an Alternative
If you are dealing with constant reviews, frozen funds, or limited support, it might be time to move on. Here are the key signs that it’s time to switch.
- Your account keeps getting reviewed or frozen for no clear reason.
- You run a high-risk business that Square doesn’t allow.
- Your money has been held for over 30 days when you really needed it.
- You’ve been reviewed many times, but you never get clear answers.
- You can’t reach real support, just automated or unhelpful replies.
- Square’s rules are stopping your business from growing.
Join LeisurePay: A Secure and Safe Square Alternative
If you’re tired of account shutdowns, frozen money, and confusing support from Square, LeisurePay is here to help. We work with all kinds of businesses, including high-risk or hard-to-place ones. LeisurePay offers payment options like ACH, Check 21, credit and debit card processing, and high-risk merchant accounts, without the stress. You get direct banking (no middlemen), real human support, and clear, honest communication from the start.
Square vs. LeisurePay: A Side-by-Side Comparison
| Features | Square | LeisurePay |
| Supports High-Risk Businesses | No | Yes |
| Risk of Sudden Shutdowns | Frequent | We don’t freeze accounts unexpectedly |
| ACH/Check 21 Support | Not available | Yes |
| Transparency | Generic review notices | Total transparency |
| Funds held during review | Up to 90 days or more | Minimal, transparent review |
| Chargeback support | Limited | Included |
Key Takeaways
Getting shut down by Square can be frustrating, but it’s not the end of your business. Understanding why it happened, taking the right next steps, and knowing when to move on are key to protecting your business. If your current processor isn’t meeting your needs, it’s time to explore a better alternative.
LeisurePay is built for businesses that don’t fit the mold. We offer secure, flexible payment solutions with real support, clear policies, and direct access to banking. If Square no longer works for you, we’re here to help you move forward with confidence.
Frequently Asked Questions
If your Square account suddenly isn’t working, it might be under review, suspended, or shut down. Square can do this without warning if they spot something risky, like unusual activity or a rule violation, even if you didn’t mean to do anything wrong.
Square reviews usually take a few days, but sometimes they can last weeks. Even after the review is done, they might keep your money on hold, depending on what they find.
To verify your Square account, you’ll need to provide some basic documents like a photo ID, business license, bank details, and recent invoices or information about what you sell.
Yes, you can get your money back from a frozen Square account, but it depends on the review. If Square decides everything checks out, they’ll release the funds, usually after a hold period of up to 90 days.
There’s no quick way to speed up Square’s verification, but you can avoid delays. Make sure you send in all the required documents, clear, complete, and accurate. That gives you the best chance of getting through the process faster.
No, you can’t usually open a new Square account after yours is deactivated. Square tracks your personal and business information, so making a new account with the same details can break their rules. If your business is seen as high-risk, any new account you create might get shut down, too.
If you need a Square alternative for high-risk businesses, LeisurePay is a great choice. They offer payment options like ACH, Check 21, and custom merchant accounts. With direct banking and real support, LeisurePay helps high-risk businesses grow without the usual problems.